Ola Electric’s Q2 Loss Narrows, Says Most Service Issues ‘Minor’

Ola Electrical, India’s prime e-scooter maker by market share, reported a narrower second-quarter loss on Friday helped by a soar in gross sales, and stated the current surge in service requests was largely for “minor points.”

The Bengaluru-based firm stated its consolidated loss narrowed to 4.95 billion rupees ($58.7 million) within the July-September quarter from 5.24 billion rupees a 12 months earlier.

Ola’s quarterly income jumped 39.1% to 12.14 billion rupees, helped by gross sales of mass fashions, or these priced under 100,000 rupees (about $1,186). It had not begun deliveries of those fashions final 12 months.

Ola Electrical delivered a complete of 98,619 two-wheelers between July and September, 73.6% increased than final 12 months. It bought 56,545 mass fashions.

Bills grew by 21.8%, slower than the earlier quarter’s 26.6% rise. Uncooked materials prices, Ola’s greatest expense, rose 46.7% however had been decrease 18.2% sequentially.

Rising shopper complaints and regulatory scrutiny over allegations of poor service have solid a shadow on the SoftBank-backed e-scooter maker, following a stellar market debut in August.

“Not all service requests that come are complaints or points with the product, a lot of them are common check-ins or scheduled upkeep,” founder and chairperson Bhavish Aggarwal stated on an analyst name on Friday.

“Two-thirds of it truly are simply minor points like unfastened components or prospects unfamiliar with the software program used,” Aggarwal stated.

Ola Electrical’s shares have fallen 5.5% since itemizing on Aug. 9, whereas its dominance within the electrical two-wheeler market has diminished in current months.

“Over the second quarter, we had a little bit of a capability problem by way of service, our gross sales expanded sooner than we had expanded our service community,” Aggarwal stated.

Reuters final 12 months visited 35 Ola centres in 10 Indian states and located many confronted important backlogs, with demand outstripping their workforce or their provide of spare components.

© Thomson Reuters 2024

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